VAT Ruling No. 086-89
VAT Ruling No. 086-89 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Mar 31, 1989
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March 31, 1989 VAT RULING NO. 086-89 Hon. Marcelo N. Fernando Undersecretary (Revenue Operations) Department of Finance Manila Dear Mr. Fernando, This refers to the letter of the Financial Attache of the Japanese Embassy to your office relative to the imposition of a 3% consumption tax on services and/or goods effective April 1, 1989. In this connection, you request a confirmation of the applicability of the value-added tax on the purchases made by the Japanese embassy and its diplomats. In reply, please be informed that in accordance with the principle of comity of nations and in view of the certification from the Department of Foreign Affairs that the Philippine embassy and its diplomats enjoy exemption from indirect tax on the basis of reciprocity, the local purchases of good and services made by the Japanese embassy and its diplomats shall also be exempt from indirect tax. However, if the supplier of the goods and services is VAT-registered, then the sale shall be effectively zero-rated. cdta Very truly yours, JOSE U. ONG Commissioner of Internal Revenue
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